Dow futures fall 300 points to start shortened week as oil prices climb: Live updates

JUST IN: Dow futures fall over 300 points to start a shortened week as oil prices climb to six-week highs, with Wall Street tracking the Middle East war and rising US-Canada trade tensions.

Dow futures dropped 308 points before Wall Street even got back from the beach. Labor Day holiday, markets closed, and the futures screens still found a way to bleed. That's 0.6 percent off the Dow, the S&P slipping too, though the Nasdaq somehow squeezed out a gain.

The trouble comes from two directions at once. Oil is at six-week highs after Iran and the US traded strikes over the weekend, with Brent above 97 dollars, and that's dragging Treasury yields up as inflation nerves build. The 10-year is at levels we haven't seen since late 2023.

And then there's the Fed. Traders are pricing a 60 percent chance of a rate hike next week, and inflation data lands Thursday and Friday. Ed Yardeni put it plainly, the coming run of central bank meetings will test whether equity composure holds.

A market pricing a hike, not a cut, in the middle of a war. That's the week Wall Street just walked into.

This is Sara White, reporting for HIT.